You'll get different answers depending on who you ask about the definition of the yacht. You can still be a yacht-owner with a 20-foot boat. Additionally, you can join a yacht club to share your stories and enjoy your weekends with other yacht owners. The first thing you should ask when you're considering investing in a yacht is how large a boat you can afford.

Calculations and Qualifications

Getting a boat loan can be difficult if you don't meet certain criteria. The loan officer won't likely say yes if your debt-to-income ratio is less than 40%. For 10 years, you will need to pay a minimum 10% down payment and a 5% APR. After you pay your $10,000 down payment, the $100,000 entry-level yacht will cost you nearly $1,000 per month. A used yacht would measure around 30-35ft in length. You can also spend an additional $1,000 to $1500 on life jackets or other equipment after you buy a yacht. There's also the matter of who will drive it.

Can You Drive a Boat?

Do you have the necessary qualifications to operate larger boats? You must either get a captain's license or hire someone to run it. You will also need yacht insurance, which can cost upwards of $600. A slip rental will run you a few thousand dollars per year. To accurately calculate how much you can spend, reverse the process: You should have between 55% and 60% of your income for any other expenses. The rest is the absolute maximum amount you can spend on your obsession.

The Cheapest Way to Go Yachting

You might not be able to afford a superyacht, but you could consider a bareboat charter if you are looking for a smaller boat. You can rent the yacht out for some time, but you won't become the owner. It works like a lease. This could be for a short-term vacation or long-term. Splitting the cost of higher-priced vessels could reduce the price. The charterer is responsible for almost all fuel, insurance, and port fees.

You can also lease your boat in shared leasing agreements. These arrangements allow you to pay a monthly membership fee to a boat club and have access to any vessel in the fleet. Although you still need to pay fuel and other costs, the cost is far less than buying a yacht. Some clubs charge an initiation fee of up to several thousand dollars and a monthly fee of about a hundred dollars.

Finance

Many banks and marine lenders will finance the purchase or leasing of a superyacht. Offering your super yacht to charter can bring you attractive returns. If you need to budget for the purchase, buying one of these boats might not be the best option. You could charter one to enjoy the same floating luxury without the responsibility of ownership. You can also charter one fractionally to share financial responsibility and super yacht enjoyment with a group of investors without investing the entire capital.

Mooring

Prices vary widely from port to port, but you will pay well over $4,000 per day to park your boat in the most exclusive marinas during the high season. For a five-day stay, berthing at prime events like the Monaco Grand Prix can run up to $85,000. Superyachts.com offers a global marina map that allows you to search for marinas around the globe and their seasonal mooring fees.

Running Costs

An owner of a yacht should expect to spend 20% to 30% annually on maintenance costs. In theory, an owner of a yacht worth $10 million would have to pay $2 million per year in operating costs. The most expensive running expenses are fuel (lots of it), boat insurance, maintenance and repairs fees, crew salaries, and vessel insurance.

Administration fees and dockage fees are approximately $70,000. Crew salaries and maintenance can run into the millions. The cost of maintaining Azzam, a super yacht measuring 590 feet, owned by President Sheikh Khalifa Bin Zayed Al Nahyan, the United Arab Emirates, is $60 million annually. However, it comes with two helipads and a missile defense system.

Crew

Luxury Yacht Group has salary guidelines for standard boat crew members. The average price for a vessel captain measuring 100- to 170-foot with five years of experience is $192,000 per year. You also need to consider chefs, stewards, deckhands, and engineers. Luxury Yacht Group created a crew cost calculator and an operating costs calculator, so new owners aren't surprised by unexpected costs.

Conclusion

A luxury yacht is expensive. Those with a high income can rent or lease a yacht, join a boat club, or team up with friends. You should have an emergency fund ready for unexpected costs.